The President of the Republic, João Lourenço, announced in Luanda that a diploma is being prepared for the revision of the Value Added Tax (VAT), with a view to reducing the aforementioned rate, for next year.
Speaking to the Nation at the solemn plenary session that opened the 2021/2022 Legislative Year, João Lourenço said that the introduction of VAT, in the last quarter of 2019, has already proved to be one of the main taxes in terms of revenues collection.
The volume of collection for this class of taxes rose from 75 billion kwanzas (US $125.4 million equivalent) per quarter to around 145 billion kwanzas (US $242.5 million equivalent).
He added that, the tax policy continues to be modernized and that there have also been changes that make the taxation of corporate and family income fairer.
In the same perspective, the Government is to reduce the VAT rate, for the purposes of taxation on import operations of agricultural inputs and capital goods, from 14% to 5% and with the aim to stimulate increase in national production.
The Value Added Tax (VAT) came into force in Angola on October 1, 2019, with a single rate of 14% (one of the lowest in the SADC region), as part of reforms initiated in 2010.
The vision of the Angolan Executive, with the implementation of the VAT (which replaced the Consumption Tax) is to broaden the tax base and make taxes the main source of revenue collection for the State.